Meta Platforms Inc. is under pressure from shareholders to explore Bitcoin as a way to protect its $72 billion cash reserves from inflation.
Shareholder Ethan Peck has called for a formal evaluation, citing concerns that the company’s cash holdings are losing value and pointing to Bitcoin’s potential as a hedge. With its impressive growth—124% in 2024 alone and 1,265% over the past five years—Bitcoin offers an alternative to traditional assets like bonds, which have delivered far lower returns.
Meta’s strong financial position, with $256 billion in total assets as of late 2024, gives it the flexibility to consider such strategies.
Peck also highlighted examples like MicroStrategy, whose Bitcoin-focused approach has helped its stock outperform Meta’s by over 2,190%, and BlackRock, which recently launched a successful Bitcoin ETF and supports limited portfolio allocations to the cryptocurrency.
While Bitcoin’s volatility and regulatory uncertainties remain concerns, supporters argue it provides long-term protection against inflation. Peck and others see Bitcoin as an opportunity for Meta to align with forward-thinking companies and modernize its approach to managing cash reserves.
The Bitcoin market is entering a complex phase marked by rising realized profits, reduced whale balances, and historically prolonged sideways price movement.
European banking giant UniCredit is preparing to offer its professional clients a new investment product linked to BlackRock’s spot Bitcoin ETF (IBIT), according to a report by Bloomberg.
Connecticut has officially distanced itself from government adoption of digital assets like Bitcoin. On June 30, Governor Ned Lamont signed House Bill 7082 into law, placing sweeping restrictions on how the state and its agencies can engage with cryptocurrencies.
Bitcoin giant Strategy has added another 4,980 BTC to its reserves in a purchase worth approximately $531.9 million, according to Executive Chairman Michael Saylor.